Focus on value, not fees

Re: 'Editorial: "Junk" fees bad for consumers' (June 24)

Dear Editor:

The article argues an interesting point of view but totally ignores the root of the argument. It is not the commission, transaction fee, add-on fee, etc., that the consumer pays that is the issue; moreover, it is the value received for the fee that is paid that is the essence of the issue.

It is interesting that "observers" of the real estate business are always concerned about agents and firms charging higher fees but raise no concern about "discount" brokers and the fees they charge in return for the services rendered and if there is full disclosure of the services offered and their past success.

As a coach of real estate agents and firms, I have some clients charging premium commissions and/or transaction fees but only in relationship to the value added to the consumer and with full disclosure.

As an example, if the average productive agent in the multiple listing service is selling 70 percent of their listings at 87 percent of the ORIGINAL listed price and my client is selling 95 percent of their listings at 96 percent of the ORIGINAL listed price and doing it in fewer days on the market, then the agent is bringing added value to the transaction and can justify a premium fee for their service.

One needs to remember that it is not the fee that is charged that is important but, rather, what the consumer has left in their pocket after the transaction closes.

Agents and firms that provide superior results and track their statistics and can demonstrate their value to the consumer have earned their premium fee.

Let's stop arguing over commissions and fees and focus on the value the consumer receives for the services rendered.

Al Mayer
Senior vice president
Real Estate Champions Personal Coaching

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